1 00:00:02,520 --> 00:00:06,880 Speaker 1: This is Bloomberg Business Week from Bloomberg Radio. I'm Carol Master. 2 00:00:06,920 --> 00:00:09,360 Speaker 1: Welcome to the Bloomberg Business Week Extra. It's our weekly 3 00:00:09,400 --> 00:00:12,680 Speaker 1: podcast with a favorite conversation and from the week we 4 00:00:12,760 --> 00:00:16,000 Speaker 1: caught up with Mattel President Richard Dixon. Now, last month, 5 00:00:16,040 --> 00:00:20,000 Speaker 1: Mattel launched Mattel Creations. It features curated items for sale, 6 00:00:20,079 --> 00:00:23,840 Speaker 1: highlights creator collaborations past in present, and kind of offers 7 00:00:23,840 --> 00:00:26,840 Speaker 1: a peek into the creative process with Mattel's very own designer. 8 00:00:27,120 --> 00:00:29,880 Speaker 1: Mattel Creations was launched in tandem with the brand seventy 9 00:00:29,920 --> 00:00:33,760 Speaker 1: fifth anniversary and is being led by Mattel President Richard Dixon, 10 00:00:33,920 --> 00:00:36,120 Speaker 1: who joined us to talk about it and well just 11 00:00:36,240 --> 00:00:39,000 Speaker 1: to talk about toys. Well, first off, thank you for 12 00:00:39,080 --> 00:00:41,640 Speaker 1: having me. Sure. I know there's a lot of news 13 00:00:41,640 --> 00:00:44,200 Speaker 1: happening that should be the fun part of the day. 14 00:00:44,520 --> 00:00:47,559 Speaker 1: It usually is, but not today, but it is now 15 00:00:47,560 --> 00:00:51,480 Speaker 1: that you're here. Well, look, I mean the good news 16 00:00:51,280 --> 00:00:53,800 Speaker 1: as we try and find it in today's you know, 17 00:00:54,160 --> 00:00:58,160 Speaker 1: uh challenging times, is that families are obviously spending a 18 00:00:58,200 --> 00:01:02,840 Speaker 1: lot more time together results of obviously you know, the pandemic, 19 00:01:03,040 --> 00:01:08,959 Speaker 1: and in fact it's reinforced the importance of play and toys. Um, 20 00:01:09,000 --> 00:01:12,080 Speaker 1: you know, the whole toy industry has continued to search. 21 00:01:12,319 --> 00:01:15,760 Speaker 1: We had a great third quarter overall in the industry, 22 00:01:15,760 --> 00:01:19,520 Speaker 1: and we're incredibly proud of Mattel's performance, which outpaced actually 23 00:01:19,520 --> 00:01:24,199 Speaker 1: the overall market. We've been gaining share and ultimately really 24 00:01:24,920 --> 00:01:30,360 Speaker 1: obviously responding to our consumers and providing the right toys 25 00:01:30,520 --> 00:01:35,000 Speaker 1: and the right assets, if you will, to occupy during 26 00:01:35,000 --> 00:01:37,959 Speaker 1: these challenging times at home. What have you seen in 27 00:01:38,040 --> 00:01:40,039 Speaker 1: terms of trends in terms of the types of purchases 28 00:01:40,080 --> 00:01:42,560 Speaker 1: people are buying? From my understanding, people were buying barbies, 29 00:01:42,600 --> 00:01:44,920 Speaker 1: they were buying hot wheels. What what were people buying? 30 00:01:44,920 --> 00:01:47,240 Speaker 1: Were there any interesting trends that you noticed in the 31 00:01:47,280 --> 00:01:50,400 Speaker 1: buying Yeah, well, certainly, again, as I mentioned, the whole 32 00:01:50,440 --> 00:01:54,840 Speaker 1: industry was up. Almost all categories posted growth and within 33 00:01:54,960 --> 00:01:57,360 Speaker 1: the Within the industry, of course, as I mentioned, Mattel 34 00:01:57,480 --> 00:02:00,960 Speaker 1: is leading and in our portfolio, you've just had you know, 35 00:02:01,120 --> 00:02:05,120 Speaker 1: enormous success with of course, categories like dolls. You know, 36 00:02:05,240 --> 00:02:10,000 Speaker 1: Barbie has had an incredible run for the year. Uh, 37 00:02:10,040 --> 00:02:14,079 Speaker 1: you know, great great increases, terrific new product reflecting obviously 38 00:02:14,120 --> 00:02:18,560 Speaker 1: diversity and inclusivity, great new toys. The game's piece of 39 00:02:18,560 --> 00:02:22,919 Speaker 1: our business has also been incredibly successful. You know, obviously 40 00:02:23,080 --> 00:02:26,880 Speaker 1: families spending time at home using games as a way 41 00:02:26,919 --> 00:02:31,040 Speaker 1: to occupy their time. You know, the number one card 42 00:02:31,080 --> 00:02:33,280 Speaker 1: game in the United States. I love you, you know, 43 00:02:33,560 --> 00:02:36,639 Speaker 1: can I just say love it, love it, love it? Right? 44 00:02:36,800 --> 00:02:39,320 Speaker 1: But we love hearing that, and many many other people 45 00:02:39,360 --> 00:02:42,120 Speaker 1: do love you. You know. In fact, um Uno is 46 00:02:42,120 --> 00:02:44,760 Speaker 1: going to be celebrating it's fiftieth year, if you can 47 00:02:44,800 --> 00:02:47,680 Speaker 1: imagine that next year, which we've got a lot of 48 00:02:47,720 --> 00:02:50,960 Speaker 1: excitement and new new product coming. To keep those new 49 00:02:51,000 --> 00:02:54,560 Speaker 1: fans going, we play kind of a hubo un version 50 00:02:54,960 --> 00:02:57,200 Speaker 1: at the beach. My brother has created a version that's 51 00:02:57,240 --> 00:02:59,799 Speaker 1: just ramped up and it's just a riot. We play 52 00:02:59,880 --> 00:03:03,840 Speaker 1: for hours. So, um that's good to hear fifty fifty years. 53 00:03:03,880 --> 00:03:06,280 Speaker 1: So I do wonder, Richard, do you would anticipate that 54 00:03:06,320 --> 00:03:08,560 Speaker 1: the trends that you're seeing, Because I'm thinking about the 55 00:03:08,560 --> 00:03:10,639 Speaker 1: holidays and I'm thinking it's been a rough year and 56 00:03:11,440 --> 00:03:13,320 Speaker 1: you know, wanted to be a good holiday season. I'm 57 00:03:13,320 --> 00:03:15,840 Speaker 1: not going to be around a lot of family, um 58 00:03:15,880 --> 00:03:19,480 Speaker 1: And I do wonder what you anticipate for the holiday season. Well, 59 00:03:19,520 --> 00:03:22,440 Speaker 1: I'll tell you, um that the toy shopping as we 60 00:03:22,520 --> 00:03:25,120 Speaker 1: see at the outlook for the fourth quarter is strong. 61 00:03:25,720 --> 00:03:28,680 Speaker 1: In fact, toy shopping has already been planned earlier than 62 00:03:28,800 --> 00:03:32,720 Speaker 1: last year. And with the um you know, a surge 63 00:03:32,760 --> 00:03:36,400 Speaker 1: with online and e commerce, the ability to shop early 64 00:03:36,720 --> 00:03:40,280 Speaker 1: is more enticing than ever. Uh. You know, our research 65 00:03:40,360 --> 00:03:46,000 Speaker 1: shows almost shoppers planned to start holiday shopping even even 66 00:03:46,040 --> 00:03:49,560 Speaker 1: just before November. And obviously we're already in November, and 67 00:03:49,640 --> 00:03:52,520 Speaker 1: with everything that's going on with the pandemic, some families 68 00:03:52,560 --> 00:03:55,560 Speaker 1: are actually planning on making these holidays, you know, truly 69 00:03:55,640 --> 00:03:58,800 Speaker 1: extra special for their kids. It's been it's been a 70 00:03:58,920 --> 00:04:04,160 Speaker 1: really challenging year, uh, four kids in many in many aspects, 71 00:04:04,320 --> 00:04:07,160 Speaker 1: and I think parents are recognizing, you know that the 72 00:04:07,200 --> 00:04:10,920 Speaker 1: simple rewards of toys and and fun. So there's there's 73 00:04:10,920 --> 00:04:14,200 Speaker 1: a lot of h I think excitement around the industry 74 00:04:14,240 --> 00:04:16,719 Speaker 1: and certainly in the Mattel portfolio for the fourth quarter. 75 00:04:16,920 --> 00:04:19,559 Speaker 1: Have you well, what's your supply chain been like during 76 00:04:19,600 --> 00:04:23,479 Speaker 1: this process? You know, it's an asset Formattel. You know, 77 00:04:23,520 --> 00:04:27,560 Speaker 1: we we have an incredible group of dedicated people and 78 00:04:27,720 --> 00:04:31,679 Speaker 1: facilities around the world that have been working. Tires Lee 79 00:04:31,800 --> 00:04:35,800 Speaker 1: certainly under the current you know, restrictions that have been 80 00:04:35,839 --> 00:04:39,680 Speaker 1: in place in verious different places, but ultimately working to 81 00:04:39,920 --> 00:04:42,760 Speaker 1: supply the demand. You know, given that there's been such 82 00:04:42,760 --> 00:04:47,240 Speaker 1: a great surge uh in the industry and in particular 83 00:04:47,279 --> 00:04:50,520 Speaker 1: for our brands and toys, our supply chain has been 84 00:04:50,520 --> 00:04:54,080 Speaker 1: working incredibly well. And as you know, in any business, 85 00:04:54,080 --> 00:04:59,200 Speaker 1: it's about execution, and our execution has been really, really terrific. 86 00:04:59,320 --> 00:05:03,400 Speaker 1: It's been a great year of excellence in performance driven 87 00:05:03,680 --> 00:05:06,000 Speaker 1: metrics for the company. So in any kind of so, 88 00:05:06,640 --> 00:05:09,080 Speaker 1: I found that fascinating your supply chain, like so any 89 00:05:09,080 --> 00:05:12,200 Speaker 1: of the manufacturing that was needed to be done, Um, 90 00:05:12,200 --> 00:05:15,000 Speaker 1: I'm assuming a lot of it happens outside the United States. 91 00:05:15,560 --> 00:05:20,000 Speaker 1: None of that stopped well, you know, we certainly had gaps, 92 00:05:20,000 --> 00:05:22,840 Speaker 1: but if you look at when the timing of the 93 00:05:22,880 --> 00:05:28,960 Speaker 1: most restrictions based on where our facilities were, primarily in Asia, 94 00:05:29,480 --> 00:05:32,279 Speaker 1: that really took place, um at the end of last 95 00:05:32,360 --> 00:05:35,560 Speaker 1: year and in fact the beginning of this year, if 96 00:05:35,600 --> 00:05:38,120 Speaker 1: you were called January in February, and and in terms 97 00:05:38,160 --> 00:05:42,520 Speaker 1: of production, the slow side of our business where we 98 00:05:42,560 --> 00:05:46,560 Speaker 1: really ramp up in production is uh In in uh 99 00:05:46,560 --> 00:05:49,520 Speaker 1: In the start of the second half, where restrictions were 100 00:05:49,560 --> 00:05:53,159 Speaker 1: lifted and we were able to resume much of the 101 00:05:53,160 --> 00:05:57,080 Speaker 1: workforce and UH and working patterns. So really from a 102 00:05:57,080 --> 00:06:01,120 Speaker 1: timing perspective, UM, as odd as it's sounds, it worked 103 00:06:01,160 --> 00:06:05,000 Speaker 1: favorably in terms of production and supply chain. Hey, one 104 00:06:05,080 --> 00:06:06,839 Speaker 1: last question that I want to talk about Mattel creation, 105 00:06:06,960 --> 00:06:10,760 Speaker 1: So working from home? Are your employees working from home? 106 00:06:10,839 --> 00:06:14,000 Speaker 1: Can some work from home? What's your take on you know, 107 00:06:14,040 --> 00:06:16,599 Speaker 1: what's happening in terms of the potential for a hybrid 108 00:06:16,640 --> 00:06:21,640 Speaker 1: workforce well as as you can imagine, our first priority 109 00:06:21,680 --> 00:06:24,240 Speaker 1: is our people and has been our people, their health, 110 00:06:24,320 --> 00:06:27,960 Speaker 1: their wellness and certainly well being. UM. And I have 111 00:06:28,040 --> 00:06:29,880 Speaker 1: to tell you just you know, being part of the 112 00:06:29,920 --> 00:06:34,880 Speaker 1: Mattel community, we really are about collaboration and we've we've we've, 113 00:06:34,960 --> 00:06:39,200 Speaker 1: of course, like many other companies, had to transition to 114 00:06:39,320 --> 00:06:43,320 Speaker 1: a work from home environment, you know, using digital first mindsets, 115 00:06:43,800 --> 00:06:47,280 Speaker 1: tools that we put into place very very quickly, UH 116 00:06:47,360 --> 00:06:51,400 Speaker 1: and mobilized around the world to accommodate from a technological 117 00:06:51,440 --> 00:06:56,080 Speaker 1: perspective as well as UM programs to ensure that our 118 00:06:56,080 --> 00:06:59,560 Speaker 1: people had the right breaks at the right times, had 119 00:06:59,600 --> 00:07:02,640 Speaker 1: the right hemily engagement UH. And we've done a lot 120 00:07:02,640 --> 00:07:06,640 Speaker 1: of great work with that in mind, and ultimately, our 121 00:07:06,720 --> 00:07:10,800 Speaker 1: our community has been incredibly resilient um and and the 122 00:07:10,840 --> 00:07:13,760 Speaker 1: results speak for themselves, but we've we've had a really 123 00:07:13,800 --> 00:07:17,680 Speaker 1: wonderful bonding if you can imagine over the pandemic and 124 00:07:17,840 --> 00:07:21,160 Speaker 1: uh and the work ethics that have risen because of it. 125 00:07:21,200 --> 00:07:24,600 Speaker 1: So does hybrid stick from Mattel, Well, I think it's 126 00:07:24,600 --> 00:07:27,840 Speaker 1: going to stick, not just for Mattel, but for many companies. 127 00:07:28,400 --> 00:07:31,520 Speaker 1: I think there is a degree of recognition that, you know, 128 00:07:31,560 --> 00:07:35,280 Speaker 1: working from home is possible, and as as we sort 129 00:07:35,280 --> 00:07:38,240 Speaker 1: of moved through whatever the new normal will be, I 130 00:07:38,280 --> 00:07:42,240 Speaker 1: think they'll be recognition that you can work from anywhere. 131 00:07:42,280 --> 00:07:45,440 Speaker 1: But there's also the need to you know, show up 132 00:07:45,480 --> 00:07:49,440 Speaker 1: work together being an environment where, particularly from Mattel, which 133 00:07:49,480 --> 00:07:54,240 Speaker 1: is a creatively lead company, where design, development and marketing 134 00:07:54,320 --> 00:07:56,960 Speaker 1: get together and really look at product and and and 135 00:07:57,120 --> 00:08:01,000 Speaker 1: I d e uh that in person um arena is 136 00:08:01,040 --> 00:08:05,640 Speaker 1: still incredibly meaningful and important. And so is social engagement. Uh. 137 00:08:05,760 --> 00:08:08,840 Speaker 1: You know that's where you get you know, bas and creative. 138 00:08:08,920 --> 00:08:11,600 Speaker 1: So you can't replace that all right. Well, speaking about 139 00:08:11,600 --> 00:08:14,760 Speaker 1: creative ideas, tell us about your new digital platform called 140 00:08:14,880 --> 00:08:17,160 Speaker 1: matel Creations. What it's all about what you're trying to 141 00:08:17,160 --> 00:08:20,040 Speaker 1: do here. Well, thank you for asking that question. It's 142 00:08:20,040 --> 00:08:23,560 Speaker 1: a meaningful new brand for us UM and it's commensurate 143 00:08:23,640 --> 00:08:27,600 Speaker 1: with the seventy five anniversary for Mattel. This year is 144 00:08:27,680 --> 00:08:32,840 Speaker 1: our seventy fifth anniversary. We were started in in a garage, 145 00:08:33,480 --> 00:08:35,800 Speaker 1: which is of course a great story by itself, but 146 00:08:35,920 --> 00:08:39,640 Speaker 1: the tie into the name Mattel Creations is because that 147 00:08:39,840 --> 00:08:43,839 Speaker 1: was the name above the garage door. Uh. And ultimately, 148 00:08:43,880 --> 00:08:46,440 Speaker 1: when you think of the name Mattel Creations, you imagine 149 00:08:46,480 --> 00:08:49,959 Speaker 1: working in it are the creators who began our company 150 00:08:50,080 --> 00:08:51,920 Speaker 1: and certainly set us up on the journey that we 151 00:08:52,080 --> 00:08:55,920 Speaker 1: uh that we are enjoying today. So to honor that legacy, 152 00:08:56,480 --> 00:08:59,560 Speaker 1: we launched a new brand called Mattel Creations and it 153 00:08:59,679 --> 00:09:03,480 Speaker 1: is an e commerce content platform that's going to feature 154 00:09:03,840 --> 00:09:09,920 Speaker 1: really incredibly exciting collector products um from designers, both designers 155 00:09:09,920 --> 00:09:13,280 Speaker 1: that you know and designers that you will know, because 156 00:09:13,280 --> 00:09:16,760 Speaker 1: we're gonna be launching them on matel Creations. Taking our 157 00:09:16,800 --> 00:09:19,680 Speaker 1: products and we have over four hundred brands at Mattel 158 00:09:20,160 --> 00:09:24,320 Speaker 1: and inviting designers to recreate them with us. So creating 159 00:09:24,360 --> 00:09:30,760 Speaker 1: limited edition much sought after curated collector product scarcity. We 160 00:09:30,880 --> 00:09:35,280 Speaker 1: know collectors love the hunt and the limited editions, and 161 00:09:35,320 --> 00:09:38,360 Speaker 1: it will really be um an engine for us that 162 00:09:38,440 --> 00:09:43,240 Speaker 1: pairs internal creators and innovators outside of Mattel to create 163 00:09:43,360 --> 00:09:47,600 Speaker 1: new and exciting collectible toys. Is this for the adult population? 164 00:09:49,000 --> 00:09:52,000 Speaker 1: You know, I think it's well, clearly, you know eighteen 165 00:09:52,120 --> 00:09:56,720 Speaker 1: plus will enjoy, you know, the curated assortment, But at 166 00:09:56,720 --> 00:09:59,760 Speaker 1: the end of the day, they're toys. And depending on 167 00:10:00,040 --> 00:10:02,760 Speaker 1: know who you are and how much you love, you know, 168 00:10:02,760 --> 00:10:05,960 Speaker 1: what you see, it certainly can be playable, but it 169 00:10:06,080 --> 00:10:08,920 Speaker 1: certainly is going to be designed for more of a 170 00:10:09,000 --> 00:10:14,880 Speaker 1: collector orientation. Limited editions, you know, highly sought after and look, 171 00:10:14,920 --> 00:10:19,600 Speaker 1: we've got amazing celebrated designer relationships traffic. Scott has worked 172 00:10:19,600 --> 00:10:22,640 Speaker 1: with us with Hot Wheels, Kylie Jenner, recently with Uno, 173 00:10:23,600 --> 00:10:27,120 Speaker 1: the late Carl Lagerfeld with Barbie and and even recently, 174 00:10:27,240 --> 00:10:29,679 Speaker 1: you know, Harry Duke of Sussex works with us on 175 00:10:30,080 --> 00:10:34,880 Speaker 1: Thomas and Friends. So there's an incredible array of pop 176 00:10:34,960 --> 00:10:39,880 Speaker 1: culture curators that are inspired by our brands and looking 177 00:10:39,920 --> 00:10:42,720 Speaker 1: forward to the play date for Mattel Creations. So we're Bloomberg. 178 00:10:42,800 --> 00:10:44,680 Speaker 1: I just have to quickly ask is this expected to 179 00:10:44,720 --> 00:10:49,319 Speaker 1: be kind of a productive revenue stream for you guys? Look. Absolutely, 180 00:10:49,720 --> 00:10:52,000 Speaker 1: you know that one of the fastest growing segments in 181 00:10:52,040 --> 00:10:56,120 Speaker 1: the toy industry has been the adult collector. And while 182 00:10:56,160 --> 00:10:59,960 Speaker 1: Mattel has always had a great collector orientation and following 183 00:11:00,160 --> 00:11:04,120 Speaker 1: in each of our brands Barbie, Hot Wheels, American Girl, 184 00:11:04,960 --> 00:11:08,679 Speaker 1: this is the first time that we're presenting Mattel as 185 00:11:08,720 --> 00:11:12,200 Speaker 1: a brand that features all of our brands and drives 186 00:11:12,240 --> 00:11:15,600 Speaker 1: a collector orientation, which we know is a segment within 187 00:11:15,600 --> 00:11:18,880 Speaker 1: the industry that's growing very fast. We believe not only 188 00:11:18,920 --> 00:11:20,520 Speaker 1: are we going to create a lot of fun for 189 00:11:20,559 --> 00:11:24,280 Speaker 1: collectors as a community, but this absolutely will be a 190 00:11:24,640 --> 00:11:27,160 Speaker 1: driving segment for the company. And that wraps up the 191 00:11:27,160 --> 00:11:30,600 Speaker 1: Bloomberg Business Week Extra podcast with Betel President Richard Dixon 192 00:11:30,880 --> 00:11:34,080 Speaker 1: on that new digital platform it's called Mattel Creations. Check 193 00:11:34,080 --> 00:11:36,320 Speaker 1: out more of our favorite conversations. You could find it 194 00:11:36,559 --> 00:11:40,080 Speaker 1: on Apple Podcast and at Bloomberg dot Com. I'm Carol Masser.